Bank of Maharashtra  (Bloomberg )
Bank of Maharashtra (Bloomberg )

Bank of Maharashtra cuts one-year MCLR by 0.10% to 8.60%

  • The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced
  • India's economic growth is estimated to have slowed to a five-year low of 6.8% in 2018-19

NEW DELHI : A day after the RBI cut the key repo rate, public sector Bank of Maharashtra on Friday announced to cut the benchmark one-year MCLR by 0.10% to 8.60%.

Bank of Maharashtra has reviewed and reduced its marginal cost of funds based lending rates (MCLR) with effect from June 7, 2019, it said in a release.

The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced.

Among other loan tenors, the overnight MCLR will attract an interest of 8.155, down by 0.05%, while the three-month tenor rate has been slashed by an equal margin to 8.40%.

The Reserve Bank in its second bi-monthly policy decision announcement Thursday cut the repo rate -- at which it lends to banks -- by 0.25% to 5.75%, aimed at spurring demand and boost the economy.

RBI Governor Shaktikanta Das had expressed concerns that banks were slow in transmitting the benefits to the consumer despite successive rate cuts.

India's economic growth is estimated to have slowed to a five-year low of 6.8% in 2018-19.

The RBI has also cut down the GDP expansion forecast to 7% for the current fiscal, against its earlier projection of 7.2% due to slowdown in domestic activities and escalation in global trade war.

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